DRAWN TO DOWNTOWN PLAN AIMS TO ADD BIG ATTRACTIONS.

Byline: Harrison Sheppard Staff Writer

Saying it will boost Los Angeles' reputation as a major convention and tourist destination, owners of the Staples Center on Wednesday announced a $1 billion downtown development project that includes 1,800 hotel rooms, a new concert theater and an expansion of the Convention Center.

The proposed Los Angeles Sports and Entertainment District, which was presented to the City Council on Wednesday, is expected to be completed in two phases by 2010.

``We will build on the success of Staples Center and we will bring new life, energy and exposure nationwide to Los Angeles,'' said Timothy J. Leiweke, president of the L.A. Arena Land Co. and Staples Center.

The developers plan to seek a public subsidy for the main hotel out of additional tax revenues generated by the project - an element that could spark controversy, as it did when the Staples deal was put together by city officials.

In addition, the city-owned Convention Center is about $40 million in the red this year, requiring another taxpayer bailout although the new project is expected to boost its revenue and therefore decrease its taxpayer subsidy.

Among features of the project's first phase, expected to be completed by 2004, are:

--A 5,000- to 6,000-seat theater, wired for high-definition television and fiber optic cable to allow live concerts, theater productions and seminars that can be broadcast over television, cable and the Internet.

--A 1,200-room, four-star hotel, approximately 45 to 50 stories tall.

--A new sports-themed restaurant, in partnership with an unnamed NBA player.

The second phase, scheduled to open sometime between 2008 and 2010, will include:

--A second hotel, with 600 rooms.

--A 250,000-square-foot expansion of the Los Angeles Convention Center, which currently has 750,000 square feet of exhibition space and an additional 130,000 square feet of meeting space.

Council members mostly greeted the project enthusiastically, but some sounded warnings about the use of public money and keeping events affordable for all city residents.

Councilman Joel Wachs, who successfully fought to scale back the original Staples Center's plan for a public subsidy, said he will again oppose the granting of subsidies.

``Should a citizen in Arleta or Panorama City pay for a hotel when they can't get their streets fixed because the city says there's a seven-year backup?'' Wachs said.

Councilman Mike Feuer said that while he supports downtown development, he is concerned that events at the new theater would be just as expensive as those at Staples Center - where a night out for a family of four can easily exceed $120.

Leiweke responded that a planned 50,000-square-foot outdoor plaza would host dozens of free events open to anyone, and the theater would likely have lower-priced ``family nights'' as Staples does, where a family of four can spend $75 for tickets, parking and concessions.

The project will be built on land that currently holds Staples Center surface parking lots, but the developers plan to build a new 3,000-space parking structure.

One of the main goals of the project is to bring new national convention business to Los Angeles by making up for a shortfall in hotel space.

Los Angeles only has 650 hotel rooms within walking distance of its convention center, according to the Los Angeles Convention and Visitors Bureau. By comparison, the nearest major competitors all have more than quadruple that figure - Anaheim has 7,777, San Diego has 3,453 and San Francisco has about 10,000, according to bureau Executive Vice President Michael Collins.

The bureau estimates that 70 major national conventions rejected Los Angeles between 1996 and 1998, meaning the loss of 750,000 hotel room-night bookings. By comparison, the 31 national conventions that did come here last year generated $309 million for local hotels, restaurants and stores.

Leiweke said he is hoping for a smoother approval process than the Staples Center underwent - a process characterized by Councilman Nate Holden as a stampede approach, in which the developers tried to present their plan as a take-it-or-leave-it deal.

Leiweke said this time he is leaving some details open and hopes to work closely with the city to produce a deal that meets widespread approval.

``We won't go through another Staples Center political process,'' Leiweke said. ``That wasn't good for L.A. and it wasn't good for us.''

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photo, map

Photo: To boost L.A.'s draw as a convention site, plans call for building hotel, theater and retail facilities on what is now a parking lot near the Staples Center.

Gus Ruelas/Staff Photographer

Map: Staples Center growing